- On January 9, 2026, Lundin Mining sold the Eagle Mine and Humboldt Mill in Michigan to Talon Metals for 275.15 million Talon shares valued at about US$127 million, lifting Lundin’s stake to ~19.86%.
- The deal also includes a US$1/tonne production payment on non-Eagle ore processed at Humboldt, capped at US$20 million.
- Talon now controls the only primary nickel mine operating in the U.S. and gains processing capacity while pursuing mine-life extension, exploration (Boulderdash) and growth projects such as Tamarack and Beulah.
- Lundin exits direct nickel operations, keeps indirect upside via its Talon holding and board representation, and refocuses on becoming a top-ten copper producer.
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Transaction details and valuation
Under the agreements announced in December 2025 and finalized on January 9, 2026, Talon Metals acquired 100 % ownership of Lundin Mining U.S. Ltd., which holds the producing Eagle Mine and Humboldt Mill in Michigan. Lundin Mining received 275.15 million common shares of Talon as full consideration, increasing its ownership in Talon to approximately 19.86 % on a non-diluted basis. The share consideration was valued at US$127 million based on Talon’s volume-weighted average share price over five trading days ending January 8, 2026.
In addition to the share issuance, the agreement contains a revenue stream in the form of a production payment royalty: Talon will pay US$1 per tonne for non-Eagle ore processed at Humboldt Mill, up to a capped total of US$20 million.
Strategic repositioning for Lundin Mining
By exiting its direct operator role in the Eagle Mine and associated mill, Lundin is shedding its U.S.‐based nickel exposure. This allows it to sharpen its identity as a copper company, focusing on large copper/gold operations in Latin America, and executing its objective to rank among the world’s top ten copper producers. Despite this, Lundin retains exposure to Talon’s potential upside through its 19.86 % shareholding and board seats, along with anti-dilution and investor rights.
Talon Metals: a new platform for U.S. nickel-copper
Talon becomes, post-deal, the only primary nickel mine operating in the United States, with control of the productive Eagle Mine and the Humboldt Mill. It inherits a downstream capability, ongoing revenue generation, and must now deliver on key priorities: extending the mine life, broadening exploration in Michigan (including Boulderdash) and Minnesota (notably the Tamarack project), advancing permitting for future production, and moving the Beulah Mineral Processing Facility forward.
Operational and market considerations
Eagle has produced over 194,000 tonnes of nickel and 185,000 tonnes of copper since startup; revenue is reported at over US$3.2 billion as of Q3 2025. Under Lundin’s guidance, Eagle was expected to contribute ~2 % of its copper output in 2026-27, which will no longer occur.
Risk factors for Talon include sustaining operations at Eagle to full capacity, managing reclamation and financial assurances until new mines are developed, integrating exploration and permitting functions, and ensuring that exposure to policy, environmental and regulatory headwinds does not undo value. For Lundin, risks involve Talon’s share value, dilution risk, and whether Talon delivers on its growth strategy so that Lundin’s retained exposure is meaningful.
Strategic implications and open questions
This transaction aligns with broader geopolitical and policy trends emphasizing domestic production of critical minerals. The U.S. is seeking greater nickel-copper supply chains, and Talon now plays a central role in that. For investors, Lundin’s exit from nickel operations reduces commodity diversity but may clarify valuation of its copper assets.
Open questions include: How long can the Eagle Mine life be materially extended, especially given impending depletion concerns? How swiftly can exploration near the Eagle operation (e.g. Boulderdash) yield sufficient ore? Will regulatory/permitting delays (especially in Minnesota and Michigan) impede Tamarack or Beulah projects? What will Talon’s capital structure look like post-consolidation, especially given the share consolidation and investor rights arrangements?
Supporting Notes
- Transaction completion date: January 9, 2026.
- Consideration: 275,152,232 Talon shares; Lundin’s post-transaction stake: ~19.86 % non-diluted.
- Valuation of share consideration: US$127 million based on five-day VWAP of Talon shares as of January 8, 2026.[0search0]
- Production payment royalty: US$1 per tonne of non-Eagle ore processed at Humboldt Mill, up to US$20 million.
- Eagle Mine production since startup (nickel+ copper amounts): over 194,000 t nickel, 185,000 t copper; revenue over US$3.2 billion to Q3 2025.
- Eagle’s contribution to Lundin’s copper production guidance for 2026–27 was ~2 %; will no longer be included.
- Governance changes: Darby Stacey becomes CEO of Talon; Jack Lundin and Juan Andres Morel appointed to Talon board.
- Strategic assets for Talon: Tamarack in Minnesota; Boulderdash discovery 8 miles from Eagle; Beulah Minerals Processing Facility.
- Lundin’s refocused strategy: becoming a pure-play copper company and targeting top-ten status, especially through operations in Chile, Brazil, and Vicuña district (Chile/Argentina).